2020 HALF YEAR RESULTS

Casablanca– 22 September 2020

FINANCIAL COMMUNICATION

1

Contents

S1 2020 Highlights & Context

Operational & financial business review

Prospects

S1 2020 HIGHLIGHTS& CONTEXT

CEO

Abdeslam Alaoui

3

World Economic Outlook

UPDATE TO THE WORLD ECONOMIC OUTLOOK, JUNE 2020

PROJECTIONS FOR GROWTH

GLOBAL

ECONOMY

ADVANCED

ECONOMIESEMERGING AND

DEVELOPING ECONOMIES

INTERNATIONAL MONETARY FUND

4

Response by HPS to COVID-19

Staff protection Client support Strengthened resilience

Technology

• Workplace health and safety measures and guidelines

• Implementation of remote work across all of our offices

• Travel restriction policy

• Medical and psychological support

• Regular communication in several channels

• Strengthened project and support follow up offered to our clients through more frequent committees (internal and external)

• Regular communication with our clients regarding the Covid19 situation

• Assessment of different scenarios to test the financial resilience of the group

• Increased frequency of financial forecasts

• Intensification of Cash flow management

• Generalised work from home assisted by activating our BCP

• Collaborative software tools readiness : Office 365, Salesforce, etc.

• Security awareness

Crisis management committee

5

• Strong upswing in Processing activity

• Stable growth in Solutions activity

• Services activity limited to remote projects due to the emergency health crisis measures in France

Operating revenue

361.6 M MAD

+3.4%

• Growing contribution of the Processing activity

• Strong growth in recurring revenue

Operating income

61.6M MAD

+9.4%

• Controlled financial result

• Increase in equity affiliates results

Net result

49.5M MAD

+22.8%

• Optimized working capital management

• Achieved billing milestones of large-scale projects

Treasury

224M MAD

+ 162%

S1 2020 in short

• Positive impact of variable cost strategy adopted by HPS

• Better use of available resources at ongoing project level

Operating margin

17.0%vs.

+16.1%

6

The payment market in the world

CAGR

(2017–22F)

Growth

(2017–18F)

Global 14.0% 11.2%

MEA 21.6% 17.9%

Latin America 6.0% 5.5%

Emerging Asia 29.7% 28.6%

MatureAsia-Pacific

10.2% 10.2%

Europe (Including Eurozone)

8.5% 6.3%

North America 4.7% 4.7%

7.1%

Developing

23.5%

MatureNo

n-c

ash

tra

nsa

ctio

ns

(bill

ion

s)

1.200

900

600

300

02,017 2019F 2020F 2021F 2022F

176.3 192.8 201.8

156.3 185.9203.6

161.1

269.5

352.8

67.681.7

90.2

48.4

54.3

111.257.7

139.3

160.6

133.8

96.2

55.6

43.149.3

538.6

168.2

144.2

123.7

61.3

45.5

604.7

684.1

184.5

170.4

208.7

74.2

51.190.2

779.2

895.5

1,045.5

2018F

61.9

74.4

Source: Capgimini payment report 2020

7

1st half 2020, pursuing the movement towards meeting our strategic goals

Achievements in 1st half 2020

Ambitions Solutions Processing Services

Regional diversification

Business Diversification

Recurring revenue

Operational excellence

OPERATIONAL & FINANCIALREVIEW

DG Corporate

Brahim Berrada

9

S1 2020 result highlights

Group business maintained and strengthened recurring revenues

Pursued development

Improved operating margin

Strengthened liquidity position

Net income making strong progress

10

19,2%

25,2%

22,8%

5,5%

7,7%

3,7%

72,7%

15,9%

11,4%

S1 highlights by activity

Business continuity ensured by the deployment of projects and support to our customers

Strong increase in recurring revenue due to the entry of new maintenance clients and the growth in Upselling

Slight impact on project deployment due to clients that did not have the capacity to work remotely

Constraints of the health emergency limiting activity on projects managed remotely

Deployment of teams on projects from the Solutions activity

Impact of COVID-19 on Switching activity due to the lockdown in Morocco

Growth in payment activity because of the deployment of the SG project in Africa and the signing of new contracts

+0.3%Solutions

+17.0%Processing

-5.9%Services

Projects

Upselling

Maintenance

Licence

Switching

Payment

11

Solutions Activity

Contribution to overall incomeStrategic directions

Anchor our presence by targeting “Tier 3” banks and ISOs in the United States

Offer our solutions to major European processors and middle-ranking banks in Europe

Develop a presence through partnerships in Southeast Asia and Latin America

Develop E-Wallet solutions and solutions for various players (telecom, retail, etc.)

Business trends in M MAD Highlights

Completion of ABSA Project with all the affiliates migrated on PowerCARD platform (8 countries, including 6 in 2020)

Implementation of version 3.5 within several important clients (SIA, ABSA,Tier1 client in Europe, etc.)

Instant payment with QR Code implemented within GhIPPS in Ghana

Completion of preliminary studies with big prospects

Strong Upselling activity mainly around contactless payment and mobilepayment solutions

Increase in maintenance revenue

240.9 M MAD +0.3% vs. S1 2019

72.7%

241240

197

147

S1 2017 S1 2018 S1 2019 S1 2020

TCAM: 18%

12

Solutions Activity

Asia

32.2%2019

Americas

4.8%2019

Europe

31.3%2019

Africa

31.7%2019

ProjectsUpselling Maintenance Licence

34.6%26.4% 31.4% 7.8%

13

Processing activity

Organic growth in the activity and by acquisition in Africa and the Middle East

Diversification of the offer 37.4 M MAD +17.0% vs. S1 2019

Contribution to overall incomeStrategic directions

Business trends in M MADHighlights

Payment

Deployment of the Société Générale project in line with the objectives

Loomis contract: management of the ATM server in France and in Belgium

Mansa Bank operational on the HPS platform

Implementation of connections to international networks finalised

Switching

Signing of several contracts for Switch Mobile in Morocco: BCP, CMI, CFG Bank, DIGIGI, Lana Cash, BMCE Cash

11.4%

24

30 32

37

S1 2017 S1 2018 S1 2019 S1 2020

TCAM: 16%

14

Switching Activity S1 2020

-0.87%

-11.5%

Change in interoperable operations processed by HPS

Switch vs. S1 2019

Month 2017 2,018 2,019 2,020

January 7,023,914 7,835,032 10,647,483 11,874,580

February 6,356,747 7,025,791 8,919,999 11,287,035

March 7,205,265 8,661,189 10,321,082 10,333,872

April 7,268,281 8,358,851 10,023,688 6,728,546

May 7,612,415 8,383,889 9,930,419 7,505,658

June 7,181,004 8,623,563 10,636,655 9,762,198

42,647,626 48,888,315 60,479,326 57,491,889

Authorisation & Transaction Request

2017 2,018 2,019 2,020

January February March April May June

+15.7%

in Q1

+6%

in Q1

15

Switching Mobile Activity S1 2020

Status in production

AAB BCP CAM W-CASH SGMA CIH BMCE M2T CMI NAPS ORANGE INWI IAM MSF ATW FPAY B-CASH CFG

Status in production

Cash DIGIFILANACASH

BMCECASH

CDMSOGE-

PAIMENT

Production – Changes to authorisations per month

The total number of authorisations is: 12,600

Oct. 18

Nov. 18

Dec. 18

Jan. 19

Feb. 19

Mar. 19

Apr. 19

May 19

June 19

July 19

Aug. 19

Sept. 19

Oct. 19

Nov. 19

Dec. 19

Jan. 20

Feb. 20

Mar 20

Apr. 20

May 20

June 20

69 87 24115

64153 139 125

255

456

270 314402

339371

550

405

304

1,2251,150

1,641

16

Services Activity

52.3 M MAD -5.9% vs. S1 2019

15.9%

Impact of the lockdown measures on project deployment

Implementation of a continuity plan for the management of projects that could be conducted remotely

Deployment of Services teams on projects from other activities

Pursuit of the sales effort remotely

Contribution to overall incomeStrategic directions

Business trends in M MAD Highlights

Diversification of activity towards high added value services

Diversification in French territory and establishment of regional agencies

53

61

56

52

S1 2017 S1 2018 S1 2019 S1 2020

17

Diversification of the offer & strengthening of recurring revenues

Solutions

Deployment of important projects

Growth in Upselling with existing clients

Several clients entered into maintenance, generating strong growth in maintenance revenue

Processing

Deployment of the projects in progress

Low growth in transactions at national level during the lockdown period

Services

Limitation on achieving projects conducted remotely due to the health crisis emergency measures in France

349.5 +0.6 -3.3361.6

+5.4

Operating revenue S1 2019

Solutions Activity

Services Activity

Processing Activity

Other Operating revenue S1 2020

184.8(52%)

207.6(58%)

Recurring revenueIn M MADIn % of operating revenues

In M MAD

+9.3

18

Geographic footprint and regional diversification

Americas

11.5 M MADS1-2020

-11.1% vs. S1-2019

Europe

126.9 M MADS1-2020

+30.9% vs. S1-2019

Asia

76.8 M MADS1-2020

+11.8% vs. S1-2019

Africa

113.1 M MADS1-2020

-21,7% vs. S1-2019

Americas

3.5%

Europe

38.7%

Africa

34.4%

Asia

23.4%

19

Operational excellence

Staff expenses

Increase in total payroll due to change in the workforce combined with an increase in salaries in S2-2019

External expenses

Decrease in sales travel expenses and expenses related to events (fairs & exhibitions)

Increase in rental expenses relating to the installation of new premises

Consumables purchased

Alignment of the subcontracting with the pace of business

Operating allowances

Depreciation relating to existing investments

* Variation compared to S1 2019** Share in operating income

361.6

-158.4+6,1%*

(43,8%)** -56.3-15.3%*

(15.6%)** -46.0+5.5%*

(12.7%)**

-7.3

61.4+9.1%*

(17.1%)**

Operating revenue S1

2020

Staff expenses

External expenses

Consumables purchased

Operating allowances

Other operating

exp.

Miscellaneous Operating income S1

2020

In M MAD

-16.2-9.3%*(4.5%)**

-15.8+61.7%*(4.4%)**

20

R&D in 2020 and beyond... 48.6 M MAD

Strengthening of R&D efforts

+17.4%vs. S1 2019

Note de Synthèse Budget 2020 34

Re f ce e de E i e QA

Le budget 2020 prévoit le renforcement de l équipe QA afin de poursuivre les efforts commencés en 2018 pour déployer les best practices du test dans tous les départements Produit et Projet avec comme objectif une automatisation totale des tests

Il est à noter que depuis la mise en place de l équipe QA courant l année 2018 :

Le déploiement a été fait dans les équipes Produit chaque produit dispose d un premier niveau de référentiel de tests et d automatisation des tests).

L intégration dans la 3.5 de l automatisation des tests unitaires et des tests fonctionnels pour les écrans.

La prise en compte de cette logique dans le cadre de nouveaux grand projets (ABSA, SG, SIA ).

Le déploiement auprès de toutes les équipes Projet et la consolidation des bancs de test Produit.

PowerCARD V4

L année a connu le lancement des travaux autour de la V4 de PowerCARD qui a été présentée lors du PowerCARD Users Meeting 2019.

Les principes de la V4 sont :

Architecture micro-services permettant : o D avoir une scalabilité infinie o De bénéficier des possibilités du cloud pour variabiliser simplement les coûts d infrastructure

notamment dans la gestion des pics. o Rendre tous les traitements de PowerCARD y compris arrêtés de comptes en temps réel

pour répondre aux enjeux des nouveaux moyens de paiements instantanés.

Les choix technologiques pris doivent permettre de récupérer la couche écran de la 3.5 pour mutualiser l investissement réalisé sur cette partie.

Suppression de la dépendance à Oracle (remplacement du Pl/SQL par les langages de développement actuels Javas scala .

Strategic directions for PowerCARD

Have “infinite” scalability.

Take advantage of cloud possibilities to vary the infrastructure costs, especially in peak management.

Ensure all PowerCARD processing is real-time to meet the challenges of new instant payment methods.

Remove dependency on Oracle

21

PowerCARD Roadmap

20232020 2021 2022 2024

PowerCARD v4

PowerCARD v3.X

PowerCARD v2

End of life

48.6 M MAD

Strengthening of R&D efforts

+17.4%vs. S1 2019

22

Backlog in S1 2020

Backlog of more than 473 MDH, representing more than 132% of total income in the first semester and 66% of overall revenue realised in 2019

Fulfilment and delivery of several large-scale projects.

Growth in the share of Processing revenues in the backlog due to the commercial success of 2019 (Middle East and Europe).

Projects

Upselling

Maintenance (1 year)

Click Fees (1 year)

Run Payment (1 year)

Projects

Switching (1 year)

11.7%

21%Processing

79%Solutions

7.8%

1.6%

14.7%

23.3%

37.5%

3.4%

23

-14

+16+135

Treasury flow

85

224

Treasurystart 2020

Activities Investments Financing TreasuryJune 2020

In M MAD

24

Operational Performance

PCI-DSS Certification

BCP Implementation

BCP triggered at all sites in March 2020

No activity interruption

Maintained client activity with no disruption

PROSPECTS

26

S2 2020 Prospects

The Group benefits from a unique position given

the diversity and resilience of its portfolio.

While managing the disruptions linked to the

Covid-19 force majeure situation, HPS plans in

2020:

Resilience of Group activity limiting the impacts related to the Covid-19 crisis

To continue improving the operating margin

To pursue growth and diversification through external growth

To strengthen R&D efforts

27

Conclusion

Business resilience

Solid operational performance

Continuation of the initiatives in our strategic plan

ANNEXES

29

Scope of Consolidation

100% 100% 100% 100% 100%

HPS Switch ACPQualife HPS Europe HPS Dubai HPS Singapore

ACPQ Switzerland

Subsidiaries

HPS S.A.

Corporate Financial

Statements

JV

GPS ICPS

Consolidated Accounts

30% 20%

Comptes Sociaux

HPS S.A.

HPS SingapourHPS Switch ACPQualife HPS Europe HPS Dubaï

GPS ICPSFiliales

JV

10

0%

10

0%

10

0%

10

0%

10

0%

25

%

20

%

Comptes Consolidés

ACPQ Suisse

10

0%

Comptes Sociaux

HPS S.A.

HPS SingapourHPS Switch ACPQualife HPS Europe HPS Dubaï

GPS ICPSFiliales

JV

10

0%

10

0%

10

0%

10

0%

10

0%

25

%

20

%

Comptes Consolidés

ACPQ Suisse

10

0%

Comptes Sociaux

HPS S.A.

HPS SingapourHPS Switch ACPQualife HPS Europe HPS Dubaï

GPS ICPSFiliales

JV

10

0%

10

0%

10

0%

10

0%

10

0%

25

%

20

%

Comptes Consolidés

ACPQ Suisse

10

0%

Comptes Sociaux

HPS S.A.

HPS SingapourHPS Switch ACPQualife HPS Europe HPS Dubaï

GPS ICPSFiliales

JV

10

0%

10

0%

10

0%

10

0%

10

0%

25

%

20

%

Comptes Consolidés

ACPQ Suisse

10

0%

Comptes Sociaux

HPS S.A.

HPS SingapourHPS Switch ACPQualife HPS Europe HPS Dubaï

GPS ICPSFiliales

JV

10

0%

10

0%

10

0%

10

0%

10

0%

25

%

20

%Comptes Consolidés

ACPQ Suisse

10

0%

Comptes Sociaux

HPS S.A.

HPS SingapourHPS Switch ACPQualife HPS Europe HPS Dubaï

GPS ICPSFiliales

JV

10

0%

10

0%

10

0%

10

0%

10

0%

25

%

20

%

Comptes Consolidés

ACPQ Suisse

10

0%

Comptes Sociaux

HPS S.A.

HPS SingapourHPS Switch ACPQualife HPS Europe HPS Dubaï

GPS ICPSFiliales

JV

10

0%

10

0%

10

0%

10

0%

10

0%

25

%

20

%Comptes Consolidés

ACPQ Suisse

10

0%

Comptes Sociaux

HPS S.A.

HPS SingapourHPS Switch ACPQualife HPS Europe HPS Dubaï

GPS ICPSFiliales

JV

10

0%

10

0%

10

0%

10

0%

10

0%

25

%

20

%

Comptes Consolidés

ACPQ Suisse

10

0%

100%

30

Consolidated balance sheet (revenues and expenses) S1 2020

Consolidated balance sheet (revenues and expenses) 30/06/2020 30/06/2019 Var

Operating revenue 359,611,114 349,542,992 2.88%

Turnover 330,519,833 328,265,601 0.69%

Other operating revenues 29,091,281 21,277,391 36.72%

Operating expenses -298,169,229 -293,250,376 1.68%

Purchases for resale - -1,368,242 -100.00%

Consumables purchased -46,008,127 -43,627,510 5.46%

External expenses -56,321,537 -66,487,136 -15.29%

Staff expenses -160,436,358 -149,256,153 7.49%

Other operating expenses -11,927,556 -9,803,185 21.67%

Taxes and levies -7,305,360 -4,879,127 49.73%

Operating allowances -16,170,290 -17,829,023 -9.30%

Operating income 61,441,885 56,292,616 9.15%

Operating margin 17.1% 16.1%

Financial expenses and income -713.570 -1,932,451 -63.07%

Profit on ordinary activities for consolidated companies 60,728,316 54,360,165 11.71%

Non-recurring revenues and expenses -4,517,727 -3,205,559 40.93%

Income taxes -15,393,268 -13,432,811 14.59%

Net profit for consolidated companies 40,817,320 37,721,796 8.21%

Share in earnings from equity affiliates 8,835,762 4,415,911 100.09%

Acquisition adjustment depreciation -1,898,851 -1,845,456 2.89%

Consolidated net income 47,754,232 40,292,251 18.52%

Minority interests 0 0 NA

NET PROFIT (group share) 47,754,232 40,292,251 18.52%

Net margin 13.3% 11.5%

31

S1 2020 Consolidated cash flow statement CASH FLOW STATEMENT 30/06/2020 31/12/2019

NET PROFIT (group share) 47,754,232 93,796,375

Elimination of net income and expenses without effect on available cash

- Depreciation allowances 10,686,992 19,702,875

-Change in deferred income taxes -597.152 -1,143,132

- Gains or losses on disposal - 2.956

- Other net non-cash revenue (expense) without effect on available cash 2,231,571 3,622,813

Net share in earnings from equity affiliates of dividends received -4,949,915 -6,088,172

Self-financing capacity of consolidated companies 55,125,729 109,893,714

Dividends received from equity affiliates - -

Change in activity-related working capital needs 79,685,880 -61,024,039

Net cash flow provided by operating activities 134,811,609 48,869,674

Acquisition of tangible and intangible fixed assets -6,439,654 -30,429,281

Disposals of fixed assets net of tax - -

Disposal of investments in companies accounted for by the equity method - -

Net consolidated company acquisition -7,409,203 -

Cash flows from investment activities -13,848,857 -30,429,281

Dividends paid to shareholders of parent company - -35,179,950

Capital increase in cash - -

Other 39.238 -336.667

Changes in borrowings 16,615,707 -19,210,542

Cash flows from financial operations 16,654,945 -54,727,159

Conversion adjustment 935,857 -1,140,883

Increase (decrease) in cash account 138,553,554 -37,427,648

Cash and cash equivalents at beginning of year 85,466,344 122,893,992

Cash and cash equivalents at end of year 224,019,898 85,466,344

Q & A